Tata Power Co. Ltd.
NSE: TATAPOWERTata Power Co. Ltd.: A 30-second snapshot
Tata Power (NSE: TATAPOWER) is a diversified power utility trading at ₹413.5, up 2.5% over the past year, with PE of 35.3 and a forward PE of 23.7 — the latter implying market expectation of earnings recovery. The balance sheet carries a debt-to-equity of 167.81 with zero FCF-positive years in the tracked period and a rising debt trend, while 5-year revenue and earnings growth are both negative at -12.8% and -4.6% respectively.
P/E
35.3
Forward P/E
23.7
ROE
+11.3%
Debt / Equity
167.81
Profit Margin
+6.0%
Div. Yield
+0.6%
5Y ROE > 15%
0/5
5Y FCF > 0
0/5
Quality
28/100
News
8 headlines · 5 positive · 1 negative
Tata Power Reports Strong Q4 FY26 & Annual FY26 PAT Growth - Tata Power
Tata Power
Tata Power Q4 & FY26 Results: Consolidated Net Profit at ₹6,636 Crore, Declares ₹2.50 Dividend - PSU Connect
PSU Connect
Tata Power's (NSE:TATAPOWER) Problems Go Beyond Weak Profit - simplywall.st
simplywall.st
Stocks to benefit from AI-infra push: Adani Energy, Tata Power, Waaree Energies, others | Target prices - Business Today
Business Today
Adani Power, Tata Power Hit Fresh Highs on Heatwave Demand - HDFC Sky
HDFC Sky
Recent context
- ·Tata Power reported Q4 FY26 consolidated net profit of ₹6,636 crore with a ₹2.50 dividend declaration (May 2026), described internally as strong PAT growth — a positive recent data point against a multi-year declining earnings trend.
- ·A simplywall.st analysis published 2026-05-20 flagged that problems go beyond weak profit, adding an independent cautionary perspective to the otherwise positive near-term news flow on the stock.
- ·Business Today coverage (May 2026) identified Tata Power among stocks positioned to benefit from India’s AI-infrastructure push alongside Adani Energy and Waaree Energies, reflecting sector-level demand narrative rather than company-specific fundamentals.
Strengths
- +Q4 FY26 consolidated net profit reported at ₹6,636 crore with a declared ₹2.50 dividend, providing a concrete recent earnings data point after years of declining 5-year trajectory.
- +Stock trades above the 200-DMA (₹390.3) and 50-DMA (₹411.5) with RSI at 45, placing it in neutral momentum territory with 11% drawdown from the 52-week high — not in an extended overbought zone.
- +Forward PE of 23.7 versus trailing PE of 35.3 implies analyst consensus projects a meaningful earnings step-up; mean analyst rating of 2.5 across 24 analysts on a 1-5 scale (lower = more constructive).
- +Sector tailwinds are present — AI-infrastructure demand and heatwave power consumption have been cited in recent coverage as demand drivers for large utilities including Tata Power.
Weaknesses
- −Debt-to-equity of 167.81 with zero FCF-positive years and a rising debt trend is a material balance-sheet risk; servicing this leverage on thin 6% profit margins leaves narrow room for error.
- −5-year revenue growth of -12.8% and earnings growth of -4.6% reflect a sustained period of top- and bottom-line contraction; ROE of 11.34% has not cleared 15% in any tracked year and the consistency score is 0 of 100.
- −TATAPOWER ranks last (6th of 6) on quality score among Power sector peers, yet its PE of 35.3 exceeds NTPC (21.7) and POWERGRID (14.9) — both of which carry materially higher quality scores.
- −The gap between trailing PE (35.3) and forward PE (23.7) requires substantial earnings realisation; if Q4 FY26 momentum does not persist, this compression scenario may not materialise, as the 5-year track record does not yet support it.
Open questions
- ?Does the Q4 FY26 PAT of ₹6,636 crore represent a sustainable inflection in earnings, or is it driven by one-time items or favourable base effects that may not persist across FY27?
- ?How is Tata Power managing debt reduction given zero FCF-positive years in the tracked period — what is the mechanism by which the forward PE compression to 23.7 is expected to be achieved?
- ?At a PE of 35.3 versus POWERGRID at 14.9 and NTPC at 21.7, what specific competitive advantage or growth visibility justifies the premium to peers with stronger quality scores?
- ?If AI-infrastructure and heatwave demand are meaningful revenue drivers, how long-dated is that tailwind, and is it already priced into the current PE expansion relative to the 5-year declining revenue trend?
Peer comparison: Power
Ranks 6 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| TATAPOWER | Tata Power Co. Ltd.You're viewing | 35.3 | +11.3% | 0 |
| Industry avg | across 5 peers | 56.7 | +13.7% | 32 |
| ADANIPOWER | Adani Power Ltd. | 33.3 | +20.9% | 41 |
| POWERGRID | Power Grid Corporation of India Ltd. | 14.9 | +16.5% | 37 |
| NTPC | NTPC Ltd. | 21.7 | — | 31 |
| ADANIGREEN | Adani Green Energy Ltd. | 141.4 | +7.6% | 28 |
| ADANIENSOL | Adani Energy Solutions Ltd. | 72.3 | +9.7% | 23 |
Technical state
Current price
₹413.50
SMA 50
₹411.53
SMA 200
₹390.29
RSI (14)
45.0 (neutral)
From 52w high
-11.1%
1Y return
+2.5%
3M return
+8.2%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 167.81 is exceptionally elevated for a non-financial company; combined with zero FCF-positive years in the tracked period and a rising debt trend, this points to sustained balance-sheet leverage that leaves limited buffer against earnings or rate shocks.
- high5-year revenue growth of -12.8% and 5-year earnings growth of -4.6% reflect persistent top- and bottom-line contraction over the measurement window, with ROE of 11.34% never clearing 15% and a consistency score of 0 out of 100.
- mediumTATAPOWER ranks last (6th of 6) on quality score (0 vs peer range 23-41) in the Power sector peer set, yet trades at PE 35.3 — above NTPC (21.7) and POWERGRID (14.9) which carry meaningfully higher quality scores.
- mediumProfit margin of 6% is thin for a capital-intensive utility; the forward PE of 23.7 implies an earnings step-up that is not yet supported by the 5-year historical trajectory of declining revenues and earnings.
- lowNews sample is small (8 articles total); one headline from simplywall.st (2026-05-20) specifically flags concerns beyond weak profit, indicating emerging analytical scrutiny of the fundamental picture.
Cross-section contradictions
- Stock is up 2.5% over 1 year, trades above both the 50-DMA (411.5) and 200-DMA (390.3), and news sentiment is positive (5 of 8 articles), while 5-year revenue growth is -12.8%, earnings growth is -4.6%, FCF-positive years are zero, and the quality score is the weakest in a 6-company peer group — price action and fundamental trajectory are diverging.
- Q4 FY26 results headlined as strong PAT growth, yet the 5-year earnings CAGR remains -4.6% and debt continues to rise — the recent quarter performance contrasts with the longer-term structural trend.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 20 May 2026 · rotates through NIFTY 500 every ~5 days